Summary: The Ministry of Finance (Department of Revenue), through Notification No. 46/2026-Central Excise dated 1 September 2026, has revised the Special Additional Excise Duty (SAED) applicable to exports of motor spirit (petrol) outside India. The notification further amends Notification No. 06/2026-Central Excise dated 26 March 2026 by substituting the rate against serial number 1 in column (4) of its Table with “Rs. 1.5 per litre”. Immediately before the present amendment, Notification No. 43/2026-Central Excise dated 14 August 2026 had restored the SAED rate on petrol exports to Nil with effect from 15 August 2026. Consequently, Notification No. 46/2026 reintroduces SAED on petrol exports at Rs. 1.5 per litre from 1 September 2026. The amendment has been issued under Section 5A of the Central Excise Act, 1944 read with Section 147 of the Finance Act, 2002 and comes into force on the date of its publication in the Official Gazette.
Analysis of Revised SAED on Petrol Exports
Notification No. 46/2026-Central Excise changes only the effective SAED rate specified against serial number 1 of the Table to the principal Notification No. 06/2026-Central Excise. Serial number 1 relates to motor spirit, commonly known as petrol, falling under heading 2710. The present notification does not substitute the rate against serial number 2 relating to high speed diesel oil.
The principal notification operates by exempting specified petroleum products from so much of the SAED leviable under Section 147 read with the Eighth Schedule to the Finance Act, 2002 as exceeds the amount calculated at the rate specified in its Table. It applies to the specified goods cleared for export, subject to the exclusions and conditions contained in the principal notification.
Immediately before 1 September 2026, the effective SAED on petrol exports was Nil. Notification No. 43/2026-Central Excise dated 14 August 2026 had reduced the petrol rate from Rs. 3.5 per litre to Nil with effect from 15 August 2026. Notification No. 46/2026 now reverses that position partly by prescribing SAED of Rs. 1.5 per litre from 1 September 2026.
Accordingly, exporters of petrol covered by the principal notification will bear an additional SAED liability of Rs. 1.5 for every litre exported on or after 1 September 2026 compared with the Nil rate applicable immediately beforehand. Illustratively, for an eligible export clearance of 10 lakh litres, the SAED at the revised rate would amount to Rs. 15 lakh, subject to the scope and conditions of the principal notification.
Petrol Export SAED Rate Changes During 2026
The petrol export SAED has been revised repeatedly during 2026. The principal notification initially prescribed a Nil rate. Subsequent amendments moved the rate upward and downward at different points during the year before the latest rate of Rs. 1.5 per litre was notified from 1 September 2026.
| Notification | Date | Petrol SAED | Effective From |
|---|---|---|---|
| Notification No. 06/2026-Central Excise | 26.03.2026 | Nil | 26.03.2026 |
| Notification No. 22/2026-Central Excise | 15.05.2026 | Rs. 3/litre | 16.05.2026 |
| Notification No. 24/2026-Central Excise | 30.05.2026 | Rs. 1.5/litre | 01.06.2026 |
| Notification No. 36/2026-Central Excise | 30.06.2026 | Rs. 4/litre | 01.07.2026 |
| Notification No. 38/2026-Central Excise | 15.07.2026 | Rs. 2.5/litre | 16.07.2026 |
| Notification No. 40/2026-Central Excise | 03.08.2026 | Rs. 3.5/litre | 03.08.2026 |
| Notification No. 43/2026-Central Excise | 14.08.2026 | Nil | 15.08.2026 |
| Notification No. 46/2026-Central Excise | 01.09.2026 | Rs. 1.5/litre | 01.09.2026 |
Effect of Notification No. 46/2026-Central Excise
The latest amendment therefore:
- raises the SAED on petrol exports from Nil to Rs. 1.5 per litre;
- takes effect from 1 September 2026;
- amends only the entry against serial number 1 of the Table to Notification No. 06/2026-Central Excise; and
- does not, by its operative text, revise the SAED rate specified against serial number 2 for high speed diesel oil.
The latest Rs. 1.5 per litre rate is also the same numerical rate that had applied to petrol exports from 1 June 2026 under Notification No. 24/2026-Central Excise, before subsequent revisions during July and August 2026.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 46/2026-Central Excise | Dated: 1st September, 2026
G.S.R. 768.(E).—In exercise of the powers conferred by Section 5A of the Central Excise Act, 1944 (1 of 1944) read with Section 147 of Finance Act, 2002 (20 of 2002), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 06/2026-Central Excise, dated the 26th March, 2026, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 205(E), dated the 26th March, 2026, namely:-
In the said notification, in the Table, against serial number 1, in column (4), for the entry, the entry “Rs. 1.5 per litre” shall be substituted.
2. This notification shall come into force on the date of its publication in the Official Gazette.
[F. No. 190349/13/2026-TRU]
DHEERAJ SHARMA, Under Secy.
Note.- The principal notification No. 06/2026-Central Excise, dated the 26th March, 2026 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 205(E), dated the 26th March, 2026 and last amended by notification No. 43/2026-Central Excise dated 14th August, 2026 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 733(E), dated 14th August, 2026.
